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PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:
- a)Rs. 1,00,000
- b)Nil
- c)Rs. 10,000
- d)Rs. 80,000
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs....
Advance on application 50000 × 3 = 150000
Required on Allotments 40000 × 4 = 160000
⇒ Difference = Rs. 10000
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PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs....
Issue of Equity Shares:
- PQR Ltd. issued 40,000 equity shares of Rs. 10 each at par.
- The shares were issued at their face value, which means they were sold without any premium or discount.
Payment Schedule:
- The payment for the shares was to be made in three installments:
- Rs. 3 on application
- Rs. 4 on allotment
- Balance on first and final call
Applications Received:
- Applications were received for 1,10,000 shares, which is more than the number of shares issued by the company.
- As a result, some applications had to be refused.
Refused Applications:
- Out of the total applications received, applications for 20,000 shares were refused.
- This means that only 90,000 shares were allotted to the applicants.
Allotment of Shares:
- The remaining 90,000 shares were allotted on a prorate basis to the applicants.
- The allotment was made in proportion to the number of shares applied for by each applicant.
Amount Received on Allotment:
- To calculate the amount received on allotment, we need to consider the total amount of money received through applications and the number of shares allotted.
- The total amount received through applications is calculated by multiplying the number of shares applied for by the application price per share (Rs. 3).
- Total amount received through applications = 1,10,000 shares * Rs. 3 = Rs. 3,30,000
- The number of shares allotted is 90,000.
- Therefore, the amount received on allotment is calculated by dividing the total amount received through applications by the number of shares allotted.
- Amount received on allotment = Rs. 3,30,000 / 90,000 = Rs. 3.67 (approx.)
- Since the payment for allotment was Rs. 4 per share, which is more than the amount received on allotment (Rs. 3.67), the amount received on allotment is Nil.
Therefore, the correct answer is option 'B' - Nil.
- PQR Ltd. issued 40,000 equity shares of Rs. 10 each at par.
- The shares were issued at their face value, which means they were sold without any premium or discount.
Payment Schedule:
- The payment for the shares was to be made in three installments:
- Rs. 3 on application
- Rs. 4 on allotment
- Balance on first and final call
Applications Received:
- Applications were received for 1,10,000 shares, which is more than the number of shares issued by the company.
- As a result, some applications had to be refused.
Refused Applications:
- Out of the total applications received, applications for 20,000 shares were refused.
- This means that only 90,000 shares were allotted to the applicants.
Allotment of Shares:
- The remaining 90,000 shares were allotted on a prorate basis to the applicants.
- The allotment was made in proportion to the number of shares applied for by each applicant.
Amount Received on Allotment:
- To calculate the amount received on allotment, we need to consider the total amount of money received through applications and the number of shares allotted.
- The total amount received through applications is calculated by multiplying the number of shares applied for by the application price per share (Rs. 3).
- Total amount received through applications = 1,10,000 shares * Rs. 3 = Rs. 3,30,000
- The number of shares allotted is 90,000.
- Therefore, the amount received on allotment is calculated by dividing the total amount received through applications by the number of shares allotted.
- Amount received on allotment = Rs. 3,30,000 / 90,000 = Rs. 3.67 (approx.)
- Since the payment for allotment was Rs. 4 per share, which is more than the amount received on allotment (Rs. 3.67), the amount received on allotment is Nil.
Therefore, the correct answer is option 'B' - Nil.
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PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer?
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PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer?.
PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer?.
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PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Application were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorate to remaining applicants. Amount received on allotment is:a)Rs. 1,00,000b)Nilc)Rs. 10,000d)Rs. 80,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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